Will rates go up, down or remain unchanged?

 
Panel Prediction
Up Down Unchanged
33% 47% 20%
 

Will rates rise or remain relatively unchanged? Experts and Bankrate analysts predict where mortgage rates are headed over the next week.
For the coming week, (Nov. 4-10), 47 percent think rates will fall; 33 percent of the panelists believe mortgage rates will rise; and 20 percent believe rates will remain relatively unchanged (plus or minus 2 basis points).

Click on the three tabs above to read the comments and rate predictions of mortgage experts and Bankrate analysts.
Bankrate.com surveys experts in the banking and mortgage fields to see if they believe certificate of deposit and mortgage rates will rise, fall or remain relatively unchanged. For the deposit index, the panel comprises banks, thrifts and credit unions that directly offer FDIC-insured certificates of deposit to the end consumer. For the mortgage index, the panel comprises mortgage bankers, mortgage brokers and other industry experts who provide residential first mortgages to consumers. Results from Bankrate.com’s CD Rate Trend Index will be released monthly. Results from Bankrate.com’s Mortgage Rate Trend Index will be released each Thursday.

 
 

Will rates go up, down or remain unchanged?

Steven Levitt
Steven Levitt
Vice president of mortgage lending, Guaranteed Rate, Chicago
Mortgage bonds are losing ground after today’s meeting. With uncertainty about tax breaks still being debated in Washington, rates will rise slightly higher in the next week. However, rates will remain in the low 4s, making it an opportune time to refinance or purchase a home.
Tommy Xintaris
Tommy Xintaris
Senior mortgage consultant, Houston
With the Federal Reserve committing to purchase around $110 billion of mortgage-backed securities per month, the potential for deflation, and mortgage bonds trading below a very important level of support Wednesday, I’m expecting mortgage rates to increase slightly in the upcoming week.
 
 

Will rates go up, down or remain unchanged?

Greg McBride
Greg McBride
CFA, Senior financial analyst, Bankrate.com
Aside from a brief honeymoon, the Federal Reserve’s action will do more to keep rates low than it will to bring rates lower. Don’t wait too long to lock.
Holden Lewis
Holden Lewis
Senior reporter, Bankrate.com
I know a lot of mortgage bankers, and not one of them votes Democratic. Their electoral euphoria will last for days, and borrowers will be the beneficiaries.
Kevin Breeland
Kevin Breeland
General manager, Residential Mortgage of South Carolina, Mount Pleasant, S.C.
After the election results, Republicans will be high-fiving themselves in the hallways. Once that wears off, what we have is a deadlocked Congress and what is shaping up to be two years of a lame duck presidency. That is not to say President Barack Obama won’t be re-elected — I am just saying the issues are so difficult that progress may be hard to see. For this week, rates will likely go lower. But this has all the makings for the bouncing off the bottom. Lock ’em if you got ’em.
Dan Green
Dan Green
Waterstone Mortgage, author of TheMortgageReports.com, Cincinnati
It’ll be a wild week, with rates finishing lower overall.
Dick Lepre
Dick Lepre
Senior loan officer, RPM Mortgage, San Francisco
The Federal Reserve is going to do more Treasury buying, and that will lower Treasury yields and mortgage rates in the short term. In the long run, this is likely to cause an increase in inflation and problems resulting from as-yet-unidentified asset bubbles, which almost always are a consequence of expanding the money supply. The Federal Reserve is in a tough spot — damned if they do, damned if they don’t.
Mitch Ohlbaum
Mitch Ohlbaum
Vice president of business development, Mortgage Capital Associates, Los Angeles
While the Federal Reserve has agreed to go ahead and purchase Treasuries in the open market, there is no guarantee it will have the desired effect. The effect it will have will be lower Treasury rates and borrowing costs for consumers and businesses.
Only time will tell if this actually causes businesses and consumers to spend. What may actually help more is the lower dollar, which allows the U.S. to export more. Either way, consumers get lower rates for a while.
Jeff Tufford
Jeff Tufford
Mortgage consultant, Monarch Consulting, Grand Blanc, Mich.
I believe the Federal Reserve’s new bond-purchasing program announced Wednesday will cause rates to be lower for the immediate future. Other economic factors will continue to pressure rates slightly higher in the long term, however.
 
 

Will rates go up, down or remain unchanged?

Michael Becker
Michael Becker
Mortgage banker, Happy Mortgage, Lutherville, Md.
As expected, the Federal Reserve announced its second round of quantitative easing, or QE2. The Fed said it would purchase an additional $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. This is about the size of QE2 purchases the market was expecting.
Leading up to the announcement, rates had been declining, perhaps in hopes of a larger amount of Treasury purchases. After the announcement, yields on Treasuries jumped a bit. I believe this is because the amount of easing was not greater. Given the fact that the stated amount of easing was just about what the market was expecting, I see mortgage rates holding steady in the coming week.
David Kuiper
David Kuiper
Mortgage planner, First Place Bank, Holland, Mich.
Now that the midterm elections and the Federal Reserve announcement are in the rearview mirror, we can take a momentary breath. Neither of the results were much of a surprise, and the markets seem to have shrugged them off, having made assumptions earlier and building this into pricing in advance. Interest rates will continue to remain at or near all-time record lows for the time being.